The simple math
Project cost minus possible incentives equals estimated net cost.
Net cost divided by estimated yearly savings equals estimated payback.
An example
A project costs $40,000. A confirmed incentive is $10,000. Net cost is $30,000.
Estimated yearly savings are $12,000. $30,000 divided by $12,000 is 2.5 years.
This is a sample only. Every building is different.
What people forget
Maintenance matters. Fewer lamp changes and fewer service calls are real savings.
Rates matter too. If your electric rate rises, payback usually gets shorter.
Questions people ask
- What is a good payback for a lighting project?
- Many owners like to see simple payback under three years, but it depends on how long you plan to hold the building.
- Are savings estimates guaranteed?
- No. They are estimates. Actual energy use and savings can vary.
Program rules and funding change. Always confirm current requirements with the official program before you purchase or install equipment. Savings shown here are estimates.